Some Stylized Facts on the Finance-Dominated Accumulation Regime

By Engelbert Stockhammer. Seventeenth-Century French Studies, 2008

286 citations recorded by the source corpus.

While there is an agreement that the Fordist accumulation regime came to an end in the course of the 1970s, there is no agreement on how to characterize the post-Fordist regime (or if such is already in place). This paper seeks to put together various arguments related to financialization (in the broad sense) from a macroeconomic point of view and evaluate their relevance by confronting them with the actual development of macroeconomic variables for EU countries. The paper discusses changes in investment behaviour, consumption behaviour and government expenditures, investigating to what extent changes are related to financialization. Households experience higher debt levels. Rising profits of businesses come with only moderate investment. The notion of a ‘finance-dominated’ accumulation regime is proposed to highlight that financial developments crucially shape the pattern and pace of accumulation. The finance-dominated accumulation regime is characterized by mediocre growth performance and a high degree of fragility. However, so far deregulated financial markets have not lead to major financial crises in advanced capitalist economies. A possible reason for this is that the size of the state sector has not been substantially reduced despite neo-liberal attempts to do so.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/eb36276733dee3f8a92af9e6ec3948ef3a8bc14b

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Citations in the corpus

Finance-dominated capitalism and re-distribution of income: a Kaleckian perspective. (2015, unknown): “…Epstein (2005) for a detailed treatment of the development of financialization in the US, van Treeck (2009) and van Treeck, Hein, and Dünhaupt (2007) for a more detailed comparison of the macroeconomics of financialization in the US and Germany, and Stockhammer (2008) for the development in Europe.”
Financialization and housing: Between globalization and Varieties of Capitalism (2016, unknown): “…(Doling and Ronald, 2010; Kemeny, 2005; Toussaint and Lessing, 2009; Watson, 2009) and as collateral in the flexible neoliberal (Aalbers, 2015; Breathnach, 2010) or post-Fordist finance-led accumulation regime (Boyer, 2000; Stockhammer, 2004, 2007) or ‘privatized Keynesianism’ (Crouch, 2009).”
Financialization: What it is and Why it Matters (2007, background): “1 Stockhammer (2007) has documented that growth in the EU has also been tepid over the past twenty-five years during the era of financialization.”
Post-Keynesian Theories of the Firm under Financialization (2009, background): “Several studies notice the divorce between accumulation and profitability that has been witnessed in many countries (van Treeck 2008, 2009; Hein and van Treeck 2007).”
The Gentle Art of Retroduction: Critical Realism, Cultural Political Economy and Critical Grounded Theory (2017, background): “In seeking to understand the conditions for struggle and explain its outcome, a fundamental question emerged: was the crisis in Iceland a crisis of the ‘finance-dominated accumulation regime’ (Stockhammer, 2008), or was it a crisis of capitalism altogether?”
Reconceptualizing financial innovation: frame, conjuncture and bricolage (2010, background): “…capitalism can be draped in the post-structuralist cloak of Foucauldian capillary power (de Goede, 2001, 2005; Langley, 2008), whereas in political economy from regulationists and neoKeynesians capitalism is driven by the imperatives of capital accumulation (Aglietta, 2008; Stockhammer, 2008).”
The political economy debate on ‘financialization’ – a macroeconomic perspective (2009, unknown): “…rates have developed very favourably in many advanced economies over the past 20 or 30 years, while physical investment dynamics have tended to slow down (e.g. Krippner, 2005: 174; Duménil and Lévy, 2003, 2005; Höpner, 2003: 306, 2005: 346; Stockhammer, 2007; Boltanski and Chiapello, 2005: xxxvii).”
‘Financialisation’ in Post-Keynesian Models of Distribution and Growth: A Systematic Review (2008, background): “2 Other authors have used different terms, with sometimes different meanings: ‘finance-led growth regime’ (Boyer, 2000), ‘financial wealth-induced growth regime’ (Aglietta, 2000), ‘finance-led economies’ (van Treeck, 2008a), ‘finance-dominated regime’ (Stockhammer, 2007)‚ ‘neo-liberalism’ (Duménil/L”
Macroeconomic and institutional determinants of financialisation of non-financial firms: Case study of Turkey (2014, background): “Stockhammer (2008) argues that financialisation leads to more volatility in macroeconomic variables, such as output growth, for two reasons: (1) macroeconomic shocks, especially those originating from the financial sector, lead to highly volatile prices and hence overshooting (for the exchange rate…”
London and New York as a safe deposit box for the transnational wealth elite (2016, background): “…on the financialisation of real estate focuses on housing finance as central to ‘mass-based’ financialisation processes (Aalbers, 2008; Montgomerie, 2009; Rolnik, 2013) and related to a broader debt-driven model of accumulation (Boyer, 2000; Fernandez and Aalbers, 2016; Stockhammer, 2008).”
Financialisation, income distribution and aggregate demand in the USA (2011, background): “1 References include Boyer (2000), Lazonick and O’Sullivan (2000), Stockhammer (2004, 2008), Aglietta and Rebérioux (2005), Epstein (2005), Krippner (2005), Froud et al. (2006), Palley (2008).”
Financialization and the workplace: extending and applying the disconnected capitalism thesis (2013, background): “Though the emphasis may differ in some respects across the authors, this is consistent with arguments and evidence from most post-Keynesian, regulation and Marxist commentators on financialization or finance-dominated capitalism (Appelbaum et al., forthcoming; Bellamy Foster and Magdoff, 2009; Froud”